Cigarette Market Report and Forecast 2017-2022


Cigarettes are presently being considered as one of the most popular methods of smoking in various regions of the world. The word cigarette has its origin from the French word “cigarette” which means small cigar. Most modern manufactured cigarettes are filtered and include reconstituted tobacco and other additives. The rates of cigarette smoking vary widely and have changed considerably over the course of history. While the rates of smoking have, over time, levelled off or declined in the developed nations, they continue to rise in the developing countries. During 2009-2016, the global cigarette market grew at a CAGR of around 6%. Factors such as rising disposable incomes, marketing strategies of tobacco companies, availability of different flavours of cigarette and social & cultural factors are currently driving this market. This report by Expert Market Research entitled “Cigarette Market Report and Forecast 2017-2022” provides a comprehensive analysis for anyone who plans to foray into the cigarette market.

Historical market trends for the cigarette industry have been provided from 2009-2016 and forecasts have been presented till 2022. On a regional level, the report has segmented the global cigarette market into the following regions – Asia Pacific, Western and Eastern Europe North America, South America, Middle East and Africa. Currently, Asia pacific represents the largest market. On the basis of the product type, the global cigarette market has been segmented as Virginia (flue-cured), American Blend, Dark and Oriental cigarettes.

The value chain analysis of cigarette industry has also been covered in this report encompassing all the activities in the value chain such as procurement, manufacturing, sales and distribution. Furthermore, the study assesses the market based on Porter’s five forces model, which evaluates the level of competition in the market by analysing factors such as bargaining power of buyers and suppliers, threat from substitutes and new entrants. A thorough evaluation of the competitive landscape of the cigarette industry has also been provided. Some of the key players in this market include China National Tobacco Corporation, Phillip Morris International, British American Tobacco, Japan Tobacco International and Imperial Tobacco Group. 

This report provides an exhaustive insight for setting-up and running a cigarette manufacturing plant. Factors such as land requirement, construction requirement, raw material requirement, labour requirement, machinery requirement, manufacturing process, utility requirement, total capital investment, total operating costs, prices, income projections, expenditure projections, profit margins, net present value, return on investment, payback period, etc. have been  comprehensively covered in this report.

The following are the key questions answered by this report:

  • What are the market trends for the global cigarette market?
  • Which are the biggest markets (regions) for cigarettes?
  • What are the major types of cigarettes? Which are the most popular?
  • Who are the key manufacturers in the cigarette market?
  • What are the land and construction requirements to start a cigarette manufacturing plant?
  • What are the machinery requirements to start a cigarette manufacturing plant?
  • How are cigarettes priced? What are the profit margins at various stages of the supply chain?
  • What is the total capital investment required to start a cigarette manufacturing plant?
  • What are the running costs of a cigarette manufacturing plant?
  • How much revenue can a cigarette manufacturing plant generate?

In order to prepare this research report, Expert Market Research conducted face to face and telephonic interviews with numerous industry participants in the cigarette industry. They included manufacturers, distributors, end users, consultants, marketing professionals, researchers, etc. Primary research accounted for the bulk of the research efforts, complemented by an extensive secondary research. Secondary sources included annual reports, press releases, books, journals, white papers, newspapers, magazines, government sources and various proprietary databases.

Expert Market Research uses its comprehensive database of macroeconomic and industry specific data to produce its market forecasts. The initial baseline forecast is produced with the most recent market data. After an initial baseline forecast, all future macroeconomic and sector-specific events and assumptions are taken into account to generate the final forecast.

Chapter 1 Preface
1.1 Research Methodology and Market Definitions
1.1 Introduction
1.2 Report Summary
Chapter 2 Global Tobacco Market: Industry Overview
2.1 Market Trends
2.2 Market Breakup by Region
2.3 Market Breakup by End-Use
Chapter 3 Global Cigarette Market: Industry Overview
3.1 Key Factors Driving the Cigarette Industry
3.2 Market Trends
3.3 Market Breakup by Region
3.3.1 Asia Pacific
3.3.2 Eastern Europe
3.3.3 Western Europe
3.3.4 North America
3.3.5 South America
3.3.6 Middle East and Africa
3.4 Market Breakup by Type
3.4.1 Virginia (flue-cured) Cigarettes
3.4.2 American blend Cigarettes
3.4.3 Dark Cigarettes
3.4.4 Oriental Cigarettes
3.5 SWOT Analysis
3.5.1 Strengths
3.5.2 Weaknesses
3.5.3 Opportunities
3.5.4 Threats
3.6 Value Chain Analysis
3.7 Imports and Exports
3.8 Market Outlook
Chapter 4 Porters Five Forces Analysis
4.1 Bargaining Power of Suppliers
4.2 Bargaining Power of Buyers
4.3 Threat of New Entrants
4.4 Threat of Substitutes
4.5 Degree of Competition
Chapter 5 Competitive Landscape
5.1 Competitive Structure
5.2 Market Breakup by Key Manufacturers
5.3 Key Player Profiles
5.3.1 China National Tobacco Corporation
5.3.2 Phillip Morris International
5.3.3 British American Tobacco
5.3.4 Japan Tobacco International
5.3.5 Imperial Tobacco Group
Chapter 6 Setting Up a Cigarette Manufacturing Plant
6.1 Key Success and Risk Factors for Manufacturing Cigarette
6.2 Products Manufactured
6.3 Manufacturing Process Involved
6.4 Process Flow
6.5 Raw Material Requirements and Expenditures
Chapter 7 Capital Investment
7.1 Land Requirements and Investment
7.2 Construction Requirements and Investment
7.3 Plant Layout
7.4 Machinery Requirements and Investment
7.5 Other Capital Requirements and Investment
Chapter 8 Operating Expenditures
8.1 Raw Material Requirements and Expenditures
8.2 Packaging Requirements and Costs
8.3 Labour Requirements and Costs
8.4 Transportation Requirements and Costs
8.5 Utility Requirements and Costs
8.6 Financial Support
8.7 Other Operating Expenditures
Chapter 9 Project Economics
9.1 Techno-Economic Parameters
9.2 Product Pricing and Margins
9.3 Income Projections
9.4 Expenditure Projections
9.5 Taxation
9.6 Depreciation
9.7 Financial Analysis

List of Figures

Figure 2 1: Global Tobacco Market: Production Volume (in 000’ Tons), 2009-2016
Figure 2 2: Global Tobacco Market: Production Breakup by Region (in %), 2016
Figure 2 3: Global Tobacco Market: Consumption Breakup by Region (in %), 2016
Figure 2 4: Global Tobacco Market: Breakup by Product Type (in %), 2016
Figure 3 1: Global Cigarette Market: Sales Volume (in Million Sticks), 2009-2016
Figure 3 2: Global Cigarette Market: Sales Value (in USD Billion), 2008-2015
Figure 3 3: Global Cigarette Market: Breakup by Region (in %), 20098
Figure 3 4: Global Cigarette Market: Breakup by Region (in %), 2016
Figure 3 5: Global Cigarette Market: Value Chain Analysis
Figure 3 6: Global Cigarette Market: Import Value Breakup by Country (in %), 2016
Figure 3 7: Global Cigarette Market: Export Value Breakup by Country (in %), 2016
Figure 3 8: Global Cigarette Market Forecast: Sales Volume (in Million Sticks), 2017-022
igure 3 9 Global Cigarette Market Forecast: Sales Value (in USD Billion), 20172022
igure 5 1: Global Cigarette Market: Breakup by Key Manufacturers (in %)
Figure 6 1: Dimensions of the King Size Cigarette
Figure 6 2: Cigarette Manufacturing Plant: Tobacco Processing: Various Unit Operations Involved
Figure 6 3: Cigarette Manufacturing Plant: Various Types of Unit Operations Involved
Figure 6 4: Cigarette Manufacturing Plant: Tobacco Processing: Conversion Rate of Feedstocks
Figure 6 5: Cigarette Manufacturing Plant: Conversion Rate of Feedstocks
Figure 7 1: Cigarette Manufacturing Plant: Breakup of Capital Costs (in %)
Figure 7 2: Cigarette Manufacturing Plant: Proposed Plant Layout
Figure 8 1: Cigarette Manufacturing Plant: Cigarette Packaging
Figure 9 1: Cigarette Manufacturing Plant: Breakup of Operating Costs, (in %)

List of Tables

Table 3 1: Global Cigarette Market: Import Values of Major Countries (in USD), 2016
able 3 2: Global Cigarette Market: Export Values of Major Countries (in USD), 2016
able 5 1: Global Cigarette Market: Key Manufacturers
Table 7 1: Cigarette Manufacturing Plant: Capital Costs (in USD)
Table 7 2: Cigarette Manufacturing Plant: Land Requirements and Costs (in USD)
Table 7 3: Cigarette Manufacturing Plant: Construction Requirements and Costs (in USD)
Table 7 4: Cigarette Manufacturing Plant: Machinery Requirements and Costs (In USD)
Table 7 5: Cigarette Manufacturing Plant: Other Capital Costs (in USD)
Table 8 1: Cigarette Manufacturing Plant: Raw Material Requirements and Costs (in Tons/Day)
Table 8 2: Cigarette Manufacturing Plant: Labour Requirements and Costs (in USD)
Table 8 3: Cigarette Manufacturing Plant: Utility Requirements and Costs (in USD)
Table 8 4: Overview of Financial Support
Table 9 1: Cigarette Manufacturing Plant: Various Techno-Economic Parameters
Table 9 2: Cigarette Manufacturing Plant: Income Projections (in USD)
Table 9 3: Cigarette Manufacturing Plant: Expenditure Projections (in USD)
Table 9 4: Cigarette Manufacturing Plant: Cash Flow Analysis (Without Considering Taxes)
Table 9 5: Cigarette Manufacturing Plant: Cash Flow Analysis (On Considering Taxes)

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